Fuel price hike may be on the way

We may be looking at a fuel price increase sometime in the future, in fact MITI minister Datuk Seri Rafidah Aziz has given us a few hints at a possible increase soon.

According to Datuk Seri, the government has given a notice six months ago to the private and industrial sectors in Malaysia of a potential increase in fuel prices, and they have reported back to the government on the possible side effects that the fuel price increase would have related to the industries they are in.

The government is already studying how much of the oil price increase should be passed on to industries, the commercial sector, and consumers as they think it is not viable to continue to maintain a petrol subsidy at its current levels.

After dabbling for years in the IT industry, Paul Tan initially began this site as a general blog covering various topics of personal interest. With an increasing number of readers paying rapt attention to the motoring stories, one thing led to another and the rest, as they say, is history. An avid electronic gadget aficionado as well as big-time coffee lover, he's also the executive producer of the Driven motoring TV programme.

Previously, it is speculate the fuel will increase to around RM 2.50 to reflect the market price. In the event of 1 tong reach USD 100, the increase will be more. In this scenario, Proton better venture into kap cai production rather than BLM.

i read in some blog and forum..they said fuel price was controlled by big three oil n gas company which are shell,bp and exxonmobil if i not mistaken(correct me if i’m wrong).they said if we boycot fuel from above company,we maybe can reduce the price..what u all opinion??

the G will announce fuel hike soon after the general election.
if they annonce now, sure hilang byk votes.
ever since HE bcome the PM, everything increase price.
those relevent ministries r helpless to help to monitor d price..

So enjoy our so call cheap petrol for this 2 months. I think we as normal working people should form a good union to fight for us like the bank employees. Raise our salary 30%. Bonus blah blah blah…………..

As long as it’s national car, then it’s ‘cheap’ lah to our G for us ‘big buck’ earner……………….

Coming soon will be the gas increase for our kitchen. Then to our petrol price increase. So next time will not be driving to mamak stall drink teh tarik as both also increase. So again we just sit at home look at our kitchen gas stove and our car, thinking of our next month salary.

i dont think that increasing the oil price is a good move. as you know, g will not increase the oil price before the general election just because their political sake. this is showing that g is cheating rakyat, believe me, their playing nice and dirty. if u ask the particular minister, surely they will, our oil is the cheapest, its all done with “est”. as you know, petronas is an oil exporter, everyday they got huge income and they wasting their own money just because F1,others big events,etc. yesterday, i watched television that show menteri di jabatan pm said that our country has huge backup money,”silo”, cost 98bilion dollars and i am asking you where all the money goes to? if g is creative, they would commercialise the biotech,hybrid,battery energy as soon as fast possible.and surely they say they dont want to burden the rakyat and they actually live not as like rakyat. they have big allowance, big wages, big salary, big house, got driver, got bmw, got merc. they dont know how the rakyat feel, what about a person with 1500 per month with 2-3 kids? living is like choking their own neck. it is common if the oil price increase, all things will be increase, tepung,susu,garam,gula,ayam….think man! orang kampung bolehla kene kencing!, nak naik harge minyak boleh..tp kene ada material yg imbangkan harge 2..menteri *^#@!#

we oso as a petrol producer… y should we suffer all these??? i tot the arabians are giving lots of contribution to us in investments and bla bla bla since they were sucking up tonnes and tonnes of money each day from the petrol price hike… btw, very brilliant comic drawn!

i tot recently the Edge reported that for every $1 increase in oil in world market,it equates to rm250million increase in petronas profits since its a net exporter…..the G subsidies will increase obviously bt the net result is thy wil stil profit in a big way…..soooo???

price hike in everyting is killing everybody im telling u…purchasing power is going down the drain….

Exper after the gas price increase, everything will increase, salary not increase…where is our gov has doing, not enough FDI, cannot control the increase of all other unrelated gas product price, salary not improved…
I always ask myself, how come our FDI still low, GDP is low, living expense has increrased greatly???

the gov have should put in excellent public transport la gov. built public transport so that people can go to work easily and not just for the weeekend. i think that our public is way stupid. two diff lrts with a monorail means there are 3 cronies to give money rather than one public transport solution for the people. due to the fact that gov also take tollss on highways just make it lowsier. toll hike than fuel hike with stupid public transport how can i go to work. bravo malaysia boleh. send evyone to space is cheaper off course. undilah umno and the gang

I think the oil price is being stirred by the middle east… Anyway if the G still dont want to lowered the car tax and value and rise the fuel sky high, i think we will be in big trouble…

If they really rise the price, will the fuel quality especially the diesel will become good? If u all venture to Singapore n Thailand, u can find they have better diesel quality (Euro3,4) then us, even their petrol are ron98 (us 97) in Singapore…

I support increase fuel price + lowered new car value + impose scrap car policies… A lot of old cars are polluting the air and are fuel drinkers, so for better future i would support new diesel car for more better fc and torque. Sorry folks, but i think the earth need some care for now…

Btw, i foreseen Perodua will out sale proton again if the Fuel price went up skyhigh in Malaysia.. Get it? :P

We shall look into alternative energy, but seem likely the G doesn’t encourage much either. Look at hybrid Civic, selling @ 160k+. Who can afford that, or just another toys for the rich. In fact we know that G makes billions in this petroleum business, its gold water tap. It’s crap to encourage alternative source, who would think the money is stink would only bring this ideas to reality.

Aiks. im bored to flame here and there. Just do whatever you want it to be. Cheers to all bros here.

Ehhem, i forsee that kapchai will become more popular… not honda Civic Hybrid, but honda boon siew EX5.

Alternative fuel source is almost non relevent in malaysian senario, as petrol price is still too cheap to allow us to consider biofuel. Remember Envo Diesel? Basically everybody just forget about it when palm oil price is nearly doubled in a year.

G will increase the fuel price, then they would kurangkan the road tax lagi, just like before (banyak mana sangat la boleh dikurang? rm60? hahaha).
Car sale and excise tax maintain.. then anounce to give local automotive vendor or manufacturer more direct incentive / taxes break etc.. which will not be passed on to the consumer (so what, rite?)
konon2 kurangkan beban rakyat. Beban mana yg kurang.. oooi!

Let see after the hike, you may think its still cheap. But we’re talking about overall economy impact in de country. Petrol increase everything increase as transportation cost higher. Simple as ABC and cost of living.

Petroleum companies do give loyalty fee to G/Royal. And their revenue subjected to income tax also. So basically the big time winner still the “someone”, so the question is all about “someone” wants to be richer or poor.

As price increased, revenue figure increase, then tax bill increase either and same as royalty fee increase. So called ‘survey/research’ just to manipulate the story.

About biofuel, %5 with palm oil + 95% petroleum. It wont makes big different, for example fuel price currently is RM1.92, %5 aprox is 10 cents. So how many times of price hike the 10 cents could absorb ? And don’t forget about the R&D cost. Over the time, its not totally solution.

Everyone is voicing out their dissatisfaction with the increase in so many necessity used for our daily life include cooking oil, bread, flour, and now fuel going to increase again? Everything increased but not our salary. So its not right thing to do. only will put in more burden for us. I saw news from different ministry saying that..its reasonable to increase the price .. sigh.. they should have do better for sake of the ‘rakyat’ else ppl would be losing confident with the G

A bit off topic;
This time, if the mid east countries have learnt their lesson, they would invest heavily all over the world with their oil money. The signs are there, that they are aquiring companies in Europe and America. The last time they had so much wealth, they squandered it all with rubbush purchases. ( The number of expensive cars that the Sultan of Brunei owns is scandalous).
Don’t be surprised if buildings in cities in New York and London chnage hands over the next few months.
Citibank would not be where it is today (biggest financial institution in the US) had it not been rescued by mid east investors. Looks like this time it will be more exciting. Chrysler? Ford? Who knows?

Do something about it, don’t just blah blah here. I’m not trying to get into trouble with anyone but if you not happy about things, find a way to deal with it. But then again, we are all Malaysian, including myself, we never even shed a drop of sweat for motherland, because we are peace loving people.

We don’t need go all gangster on people but the last time check we are still listed as a democratic country. you can still vote. Do something. Do anything.

Believe in the system, the system is suppose to serve the rakyat. Not the other way round. This is still a wonderful country and the G have been doing a great job all these years, perhaps we as rakyat have not been doing our part to send a clear message through what we really need.

If we think the way G spends money is not the best for the rakyat, tell them. Otherwise don’t complain. Why don’t we ask why the millions of ringgit spend on shooting up doctors to the space to make roti canai when everyone can go to space via Virgin Galatic “Where Everyone Can Be Astronaut!”

Is all the money putting a sticker on F1 car really matters, could it have been used better by helping the guy with a kapcai by having an extra piece of kuih before the long day at the construction site?

Perhaps like what Evan Almighty did, we all, and I mean WE all should just perform One Act of Random Kindness. Truly helping people. So we can all drive a decent car that justify the price tag. Question is, how many law & constitution makers out there still remember this one simple thing?

Don’t we all wish God is on our side now?

Morgan Freeman in Evan Almighty: “Let me ask you something. If someone prays for patience, you think God gives them patience? Or does he give them the opportunity to be patient? If he prayed for courage, does God give him courage, or does he give him opportunities to be courageous? If someone prayed for the family to be closer, do you think God zaps them with warm fuzzy feelings, or does he give them opportunities to love each other?”

if like this better be a tokey minyak lor so sad govt servant naik gaji and all the thing also naik better no naik gaji if like this…. darn people like me who need to pays ptptn better gali kubur awal lor gaji kecik cannot survive or maybe the grave price also hike due to fuel hike darn wish to live where money is no big deal……..hey who have part time job share with me

we cannot blame our G entirely on the petrol price hike…coz it’s controlled by international market…the best way our G can tackle this problem is by strengthening the ringgit..now 1 barrel of petrol is around US$100 = RM334
if let’s say our ringgit is back to pre-1997 economy crisis, which is around RM2.50 = 1 US$, which means 1 barrel will be around RM250…tat’s around 25% reduced in petrol price…

So r them gonna reduce the cars tax & no more APs. If not we will see the cars price go up as well as the fuel price. Where as others place we can see the car price is getting cheaper when the fuel price is up.

my point is… its not the gov’s responsibility for ur salary increment if u r working in the private sectors… you should blame ur company! i noticed a lot of big chinaman company pays peanuts but expect u to work around the clock… maybe its high time to look for another job?

anyway, how to give higher increment if most of u guys are browsing paultan blog during office hours? that includes me la… hehehe

To offset these sort of price increases IS NOT just to raise salary. This will cause runaway inflation.

What we need is to find ways to appreciate the currency.

However, this will negatively impact our export business but raising up the standard of living through increase of purchasing power. Business will eventually need to upgrade themselves to run more efficiently and/or find new markets. Win win for us all at the end.

First step is not for the G to swindle the monies, (which it has been really one thing it is doing well) but re-invest into the country for infrastructure and removing non-tariff trade barriers, in which will increase the odds of more FDI and eventually need to a good balance of trade surplus. This will appreciate the value of the ringgit.

Vote like you mean to see positive changes in the next few months. Most Malaysians dont even bother, but then complain. If you dont vote for the government you want (or vote out the government you dont want), you forfeit your right to complain.

we cannot depend the petronas to give subsidy for our petroleum.they already give gas subsidy for cooking that we maybe didnt know that.i think all know that petronas is the largest taxpayer in our country that i think around 40 billion ringgit at least!!.not include all the royalty and subsidies that they give.of course they cannot control the market price because in oil n gas industry,petronas is much more follower and not the leader.i believe if the petronas become the leader in the market,the price will not go up like now.futhermore,we are lucky that have petronas because they can give money to goverment and they run like the true business and not some other GLC that more for cronies but they use the BP terms to kabur mata rakyat.

if they use the profit that they get just to give subsidies,how they can run a business?they need invest for the business also if they want to expand.In my opinion,we should blame the BiG three petroleum company and OPEC because they all suck all the money from around the world.they know there are shortage in market but the they didnt want to increase the production because afraid the price will go down and reduce the profit

PETRONAS, our national petroleum Oil & Gas MONSTER makes a tons of money at USD$39 a barrel. Now at USD$90 a barrel, do you know how MUCH Petronas will be making?
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Bolehland exporting around 700K tong daily.

700,000 x USD 39.00 = USD 27,300,000.00 a day.

1 year = USD 27.3 Million x 365 days

= USD 9,964.50 Millions

= RM 34.88 Billion.

This is extra income for the increase in price for our export. If not mistaken, our G for fuel subsidy is around RM 13 Billion a year? The extra income is easily offset the petrol increase even after offset increase in cost for petrol import from other countries.

So, who is the loser, RAKYAT – have to pay inflated car price under NAP, pay tol, less and less petrol subsidy, etc.

Price hike on petrols shows govt is bankrupt on ideas, not on financial reasons.
Govt and Petronas can’t afford the, say, RM50b fuel subsidy per year? It’s just pretext for the coming general election as political commodity up for sale. Wise up peeps.
Govt can always afford the subsisdy if govt stop all the lunatic racist development policy: NEP, AP, NAP, MARA, race-based education system, etc. We all born with the same arms, legs and brains to survive. No such thing as Chinese, Indians DNA profile(thus advantageous in many fields ie. education level) much superior to the Bumiputeras (thus still need govt help to be spoon-fed ie. education scholarships). If Badawi says it’s a sin to him if he is not helping the Malays, well we all rakyats much happier if he admit that actually he is helping those Malay cronies crooks to survive only (which constitutes a small minute group of bloodsuckers out of total M’sian population). Helping the deserving Malays(duh!) and helping the crooks cronies Malays way a big RM50b worth of subsidy to be taken off from all rakyat.

Max88,I’m a bp.but i dont agree how the G function.actually they dont help BP people.they help more their cronies.after pak bo-dolah become pm.how monet contract that scomi get(own by KJ).miti old woman with her ap king son in law.they just use bp agenda to kabur mata bp only.

I am very much agreed with the nett profits government is getting from the petrol price hike. But if the governement not to increase the price accordingly like other neighbouring countries, our heavily subsidized petrol will go missing without benefiting the citizen and economy thru smuggling (i am very sure our local agencies are handicapped in controlling this!). And at the end of the days, it seem our rakyat petrol consumption is increasing every year!!
But by just increasing price of the petrol without other adjustment like salary, reduction of taxes will be surely a burden to rakyat. With the export of so much crude oil by Petronas, I would like to suggest to them to improve the facilities in the country to process those crude oil into refined, high quantity petrol as this will create very much value in each litre of petrol! But do they really have such expertise? As far as i know (correct me if i am wrong), even if other big companies like “shell” not allow to sell petrol in malaysia (only petronas sole supplier) i dont think petronas will have the capacity to supply enough refined petrol for the used of road vehicles, and they will need to export more crude oil and buy back from other country refined petrol. Secondly we should encourage usage of more petrol efficient car with special tax exemption, and at the same time to impose higher taxes for high cc cars. I would be fairer to Mr A to pay higher taxes if he travels with double petrol consumption than Mr B for the same distance. Example like 4 wheel drive should not neccessary to be used as tool to travel on our road that cost so much wastage of our subsidized petrol without generate more income to the nation. Again, those vehicles used as the government official vehicles with free petrol should be changed to a fuel efficient one to reduce the total comsumption of petrol in the country. (the petrol not only used but rakyat, but all the big cc government official cars!)

when u go into the voting booth and register your name and they give you a balloting ticket with a number that corresponds with your name, knowing that with that ballot, they would be able to trace who put that vote, knowing that all our personal information are all connected, loans, summonses, family tree, what you bought at carrefour, will you guys put your money where your mouth is?

u see la..they will say…our petrol is still cheap if to compared to other country…wat a bloody fool frm G…they are all fool…compare with negara xde minyak watper…try compare dgn negara ade minyak…they think we all stupid…pity to G…all fool in there….gosh….minyak naik…hrge kete naik…barang naik…sume naik…

when u go into the voting booth and register your name and they give you a balloting ticket with a number that corresponds with your name, knowing that with that ballot, they would be able to trace who put that vote, knowing that all our personal information are all connected, loans, summonses, family tree, what you bought at carrefour, will you guys put your money where your mouth is?

the price of cars really din increase much…when my dad bought his wira 1.6xli way back in 1995, it was 59k…now, its replacement model, persona is only 55k…considering the weaker ringgit now,the price of car din really change…

I don’t really MIND if we got oil price hikes or volatile oil price like advance country like SG, HK, Europe, US etc BUT our car also must follow them (no more PROTON privilege if it just make our country uncompetitive, our people suffered badly when purchase foreign brands).

SO, if government want to increase the price THEN forgo the one of heaviest tax on automotive product in the world!

Our law must reflect those in advance/1st world as well-no more BRIBE or keep at bay.

Transportation are reliable yet affordable, unlike now 3rd world SALARY 1st world EXPENSES.

Tax must based on Co2 (emission), FC (more frugal more saving in tax).

GOVT maybe not really understand as their politicians overly business-biased, their economist are too shy to assist government with their ideas–poorer rakyat will affect economy-smaller purchasing power not enough power to stimulate and boost economic sectors.

Bottom line, more corporate governance, improvement in many aspects will lead to another SINGAPORE as we have resources.

Everything will increase after the gas price hike, I don’t think G has doing good job and I hate to see we have waste money on some stupid space project, I will use my vote to send my complaint and message to G for doing poor jobs…

You guys never own a business ka? You always need funds to expand & survive. If you look at petronas’ website you can download the latest fy financial report. They never hide their financial figures. about 60% of petronas profit went to gov last year (in subsidies/tax etc).
the other 40%? for expansion laa.. LOGIC maa.
for a company to give away 60% of profits is to me very kind already. shell/esso etc never have to give a big chunk of their profits to anyone for free.

if gov take all petronas money then they can never expand or improve, cannot survive anymore as all O&G corporations in the world getting bigger by the day. then will end up like indonesia’s pertamina – slow growing and dodgy.

i also hate the price increase, but what to do? we live in 21st century, oil is bound to be expensive. if ppl want 13 dollars per barrel can go live in the 60s/70s.

but having said that, the gov shouldn’t be WASTING petronas’ money in the stupid space tourist project/ expensive sports center in europe/ bailing out cronies. helicopter also always crash, better buy new helicopter what. it’s not about the oil company, it’s how the gov spend the money.

If you own a business, the price hike comes like a deep scratch first to your hands, then to your back, and then to the elbow and later on to the chest and in the end you bleed the whole body – Trust me.

The price of steel and cement have gone up in barely 6 months. Recently we also heard about the bread’s price which has gone up too. The price of disposable items made of plastic has also increased. Spend some time to check other materials and you’ll be surprised.

Now the fuel. What’s next??

They say political power = economic policies. How do they do it here in Bolehland?

It’s time for us to share our views with big G. We must tell them that we (the consumers) are not to be pushed around. Or else we get all the rubbish NEP and NAP.

Oh ya, 60% goes to the G. So 40% goes to what? 1st class tickets, RM10k salary for a petroleum engineer, 5 star room accomdation. And for what? Just to have a bunch of incompetent fools wasting one our most important natural resources.

Itâ€™s time for us to share our views with big G. We must tell them that we (the consumers) are not to be pushed around. Or else we get all the rubbish NEP and NAP.

Oh ya, 60% goes to the G. So 40% goes to what? 1st class tickets, RM10k salary for a petroleum engineer, 5 star room accomdation. And for what? Just to have a bunch of incompetent fools wasting one our most important natural resources
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its oke la if they receive 10k salary.compare to their work.do you want to work at oilrig for two straight?do you want to work where around you are gas pipe which anything can happen?furthermore,you should do research about petronas ceo,he go work just using putra.even he become ceo,sometimes he balik kampung just using bus.i know this because i read article where the reporter interview him.there are any other O&G company that give 60% of the profit to G.the problem is with our G and not petronas like joe203 said.so dontn blame petronas if price goes up.

when u go into the voting booth and register your name and they give you a balloting ticket with a number that corresponds with your name, knowing that with that ballot, they would be able to trace who put that vote, knowing that all our personal information are all connected, loans, summonses, family tree, what you bought at carrefour, will you guys put your money where your mouth is?

This blog is about us sharing our love of cars. If bad policies affect them, its fair game.

BP or not BP is not the issue here. I just hope BPs in general can wake up to the fact that in the ILLUSION and EXCUSE of helping BPs, they are dragging the entire country down into abyss. Seriously, if I’m bumi, I would be ashamed to be one. Takde Maruah.

However, saying that there are no unfair segregation between races, you have got to be blind or just plain ignorant. Face it, it happens, we all know it to happen and will continue to happen as long as the powers to be wants it that way.

I can’t believe there are individuals who still think that PETRONAS has nothing to do with this.

The INCREASE and DECREASE of OIL price rest SOLELY on the hands of our PM (influenced closely by Petronas). That’s a FACT.

As long as we are a NET exporting country, Petronas is able to subsidize our fuel prices at $39 abarrel, $90 a barrel or even when global prices are at $200 a barrel. Again, thats because WE ARE A NET EXPORTER!!

joe203 has got it right here, Petronas are doing good things for the country & contribute huge amount in tax, subsidy and so on. Imagine if your business had to pay 60% in tax to goverment.
The salaries in there may be high but they have to as oil & gas industry is global industry, professionals are in demand all over the world by all companies. At over $90 per barrel everyone wants more and willing to pay top dollar for good professionals – many malaysians have already left to work in middle east & other countries for many times their salary with petronas. Then who’s going to run the company & make more oil to pay for all the subsidy etc etc??!!

Petrol price going up is inevitable, it can only be subsides as long as malaysia is net exporter, after that it cannot be realistically funded any way. Currently amongst the cheapest in the world!
http://www.nationmaster.com/graph/ene_gas_pri-energy-gasoline-prices
(Look near the bottom, #127)

The only way to penalise people who are wasteful of fuel (driving un-efficient cars, etc) is to TAX petrol, not subsidise it more! Then the more fuel you use, the more tax you pay. Changing car taxation on efficiency, Co2 and so on also useful for environment so can use that too.

I canâ€™t believe there are individuals who still think that PETRONAS has nothing to do with this.

The INCREASE and DECREASE of OIL price rest SOLELY on the hands of our PM (influenced closely by Petronas). Thatâ€™s a FACT.
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Such a NAIVE fool.

Our ex-PM, you know who right? when he retired; what were the 2 â€˜ADVISORâ€ postions that were taken up by him?
1. Proton (his baby)
2. Petronas (our nationâ€™s richest cashflow)

Unless our ex-PM is interested in the O&G indsutry; there must be a good reason why he wanted to took up that post right?

(Note: Never mess with the accountant when it comes to OBVIOUS facts)
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I still waiting your FACT.OFFICIAL FACT.if not,u are naive fool.talk BIG.what fool accountant.want to talk big.he can become ADVISOR because he has very very good vision.dont easily underestimate other person la accountant.he already become PM and many more,but you only accountant but already proud with it like hell.dont scare me at all.haha

You are obviously a fool. I could be a prostitute, an accountant or even your uncle trying to mess with your brain.

So you think our ex-PM took up the role of ADVISOR to PETRONAS beacuse he had good VISION?
What? our ex-PM has been in the O&G industry for years? Maybe he can give his management expertise to PETRONAS on how to be competitive by just sucking OIL from the ground huh?

Maybe you are right la! He is needed since the staff working at PETRONAS is incapable of any form of leadership. Could such people be behaving like you?

TheDuck..u may be an accountant, a prostitute or watever…but i am sure u r not a businessman…giving out 60% of profit is a HUGE amount…let’s say u r petronas, ur parents is the G, and ur parents grandchildren (not only ur children,but ur siblings children) as the rakyat which uses petrol…will u pay 60% of ur hard earn money to ur parents to subsidise all ur nieces and nephews???leaving 40% for ur own??i dun think u would…but Petronas just did…get it?

As mentioned a few times by others…petronas needs to make use of the 40% for investment and expansion of its business…and now u r making your own assumptions that our ex-PM became the advisor of petronas for certain reasons u mentioned above…and tat’s ur OBVIOUS FACT??have u written a thesis b4??u need references for OBVIOUS FACT…u cannot write yourself or hearsay as a reference (jz in case u dunno)…grow up…

Ya, it is too bad we still don’t have enought FDI, higher GDP, our salary increase rate is low, people purchasing power has reduced, and I do feel that living cost burden is getting heavier and heavier…

one didnt increase.our prepaid or postpaid line..hehe..today rate is very much cheaper..1 cents pon leh send sms..haha..just joking..
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Telecommunication sector is one of the free market competition without the invincible hand of cronies or politician or “NAP” like policy to inflate the price, so the rakyat benefited from the economic of scales and lowest rates.

I canâ€™t believe there are individuals who still think that PETRONAS has nothing to do with this.

The INCREASE and DECREASE of OIL price rest SOLELY on the hands of our PM (influenced closely by Petronas). Thatâ€™s a FACT.
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That’s a FACT? Indeed you are the biggest liar in this thread. The oil increase is a world phenomenon, partly influence by China excessive demand for its industry. Today news shown that PetroChina is the world biggest company by market value at USD 1 trillion compare to Exxon Mobile USD 488 billion.

http://news.bbc.co.uk/2/hi/business/7078518.stm

Also, now is going into winter season for temperate countries in the west, thus the demand for petrol increase in order to generate heat to make them warm.

We shall at least as good as SG if not US (GDP = USD 44K) since we are rich in natural resources.

Currently, we have approximately 11 million active workers (under employment or self employ) contribute to the nation economic activities.

If we are as good as Singapore, means 11 million x (USD 31K – USD 12K) = USD 209 billion.

Therefore, on average, taken into consideration 25 million population, every “tak apa” attitude citizens from baby to going/near to die are get less USD 8,360 (RM 29,260.00) per head compare to Singapore kiasu citizen.

However, our monkeys/clones in the G still claim we are good at this and that compare to some poorest African or 4th world countries. In FACT, the countries lose out approx USD 209 billion economic opportunity due to don’t need to explain rubbish policies and corruption taken place as we witness today.

But looking at our minister salary scale, what I know our PM salary also around RM 20K only. If our country corruption level is minimum like Singapore or the minister have to be as efficient as Sing counterpart, I wonder how many of our present ministers is interested to become a minister?

Politics and policies (especially bad ones) affect us all, affect our ability to enjoy what we enjoy.
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So, my calculation is we lost economic opportunity at around USD 209 billion a year (if we are as good as Sing) or RM 29,260.00 on per head basis compare to Singapore. It is almost 10 time Petronas contribution to our nation coffer.

So, our “wolf-face-with-chicken-feather” politicians still put up a lot of clone shows!

both my elder brother and his wife have worked in Petronas for about a decade now, both Petronas scholars, british educated and now senior execs. they both seem to say that the ‘automatic-pricing-mechanism’ (or some giberish like that) the G use to stabilize the fuel price ( to protect the economy from the constantly fluctuating oil prices) was not suppose to be a form of subsidy. if world oil prices were low and the set price here is some-what higher, the country would pocket the difference. but more often than not, the G had to pay the differnces since the prices here were always lower than most parts of the world-and became some sort of a subsidy. but the G never had the political will to actualy adjust the local fuel pricing here, form time to time, to reflect contemporary world oil market conditions; for fear they might lose support from the rakyat. but there’s a price to pay: the rakyats have grown addicted to this ‘subsidy’ and now with oil prices reaching almost USD100 a barrel, the burden is just way too much. my bro said it is true that our fuel prices are ridiculously low when compared with our immediet neighbors(but not as low as those arab buggers) and it actualy, in some ways, distorts our economy. so this move to increase fuel prices is a, very-painful, must. also, the reason why we dont have low sulphur petrol and diesel boils down to price again- the higher the quality, the higher the price; and the rakyat does not like high prices ( but still want hi-quality fuels). so whats gonna happen now? have we, the rakyat became too dependant on G fuel ‘subsidies’? maybe, just maybe, one of the reason why we all dont earn as much as our SGrian counterpart (but better compared to our other neighbors) is because a sizeable chunk of our wealth, that could’ve been redistributed/used for developments, is used to pamper ourselves with artificialy-cheap fuels and lull us into a false sense of reality. if that is the case, we only have ourselves to blame.

Government due to their policies (one of the main reason why our FDI not that attractive-very hard to understand policies from foreign investors point of view) made us enjoy such a “LOW FUEL PRICE” compared with our neighbors (except Brunei).

Govt can adjust price of gas to close-to-real-situation instead of now, BUT in the same time Govt must also amend other things:
1 REDUCE TARIFF & NON-TARIFF BARRIERS TO AUTOMOTIVE,
2 Keep corruption at bay
3 Law enforcement mechanism must be world class
4 Our politician also 1 world class
5 Business, do not mix with politic (otherwise we can enjoy better highway for free (inexpensive toll rate: current pro-highway CONsessionnaires merely made us pay higher than our income can support)
6 Use other countries as benchmark in every sectors not only when our country seems better than them, i.e never compare fuel price in Japan when their cars (very very low in our standard Wish for instance not even RM50k we pay RM156k)) and income (compare factory workers’ salary).

That’s why they can afford “expensive ” (in Malaysian term) daily long distance express train fares unlike us because their income are very very high. But in the same time they don’t have much priority for cars unlike us because car ownership DEARER than us when it come to FUEL cost, parking etc.

SO the equation must well thought DON’T biased. Otherwise our policies relentlessly the DUMBEST one and scare away FDI.

maybe, just maybe, one of the reason why we all dont earn as much as our SGrian counterpart (but better compared to our other neighbors) is because a sizeable chunk of our wealth, that couldâ€™ve been redistributed/used for developments, is used to pamper ourselves with artificialy-cheap fuels and lull us into a false sense of reality.
————–
Fuel subsidy is the norm for most of net oil exporting countries (Brunei, OPEC members, etc) and our petrol get the least subsidy or we pay the highest price among net oil exporting countries. That is a disgrace achievement, considering that countries like UAE or Brunei have no income tax. Their electicity is free for all local residence! WTF, subsidy a little bit to benefits the poor rakyat make noise already.

Furthermore, the actual thing that “lull us into a false sense of reality” are “Malaysia Boleh” that is in reality is “Bodohland”. Good examples for these are built the highest & longest for this and that, put milo tin on the wheel at north pole, space tourist, IDR, ECER, National car produce junk metal at inflated price, etc, etc, etc.

So, do you demand for prove again? Go around and see on the ground your-self!

but thereâ€™s a price to pay: the rakyats have grown addicted to this â€™subsidyâ€™ and now with oil prices reaching almost USD100 a barrel, the burden is just way too much.
———-
As a net oil exporting countries, do you make calculation the additional income from this “phenomenon” increase? The benefits of increase is too much and shall be able to increase the subsidy or reduce the petrol price!

I think you misintrepreted my wrtings. I am not saying that PETRONAS has anything to do with the increase of oil prices. But, it plays a major role in the levels of SUBSIDY on our nations oil prices. Am i not right?

As for infinity

It appears that you are also as NAIVE as me. Think carefully, 60% goes to us. What is our nations petroleum tax rate? Do you know what 40% constitute?

Heres MY ultimate EVIDENCE!!!

GO LOOK AT PETRONAS contracts for sub-contractors FOOLS. Theres the answer. That is where our nations resoruces are spend. Dont believe?
Well, have you heard of a NON-BUMI getting such contracts?

bigfish said:
As a net oil exporting countries, do you make calculation the additional income from this â€œphenomenonâ€ increase? The benefits of increase is too much and shall be able to increase the subsidy or reduce the petrol price!
____
so you’d rather spend those gains on subsidy; i beg to differ. we could use the funds better elsewhere, especially on education. and I’d happily make that sacrifice if it means that one day your kids go to schools with better facilities.

shooter, you have a good points, if not to subsidy fuel, then G shall invest in upgrading and built more un-toll road, reduce car tax (especially small car to make it more affordable to lower income group), invest in rail transport, public transport, etc.

Dear all,
I am mortified by the lack of ignorance and the way some people air views and assume facts in this forum. Facts and fiction have all been intertwined and confused for one another.

I can firmly say the following to some of the comments I have read:
1. The oil price in the world today is not controlled by any one company. It is a function of supply and demand. This mechanism of free market then influences price of crude, the most important being the NYMEX crude index in the US. Now one might ask who is in this trade of crude? Well they are crude suppliers (the world’s oil companies), oil consumers, fund managers, banks etc.
2. The illusion that the level of subsidy in this country is indirectly controlled by PETRONAS. This is incorrect. Irrespective of what the level of subsidy is, PETRONAS will still get the same amount of money for the oil it sells. This is the same case for Shell, Esso, Mobil… etc etc. It’s a totally different case for gas subsidy as this is being fnanced directly from PETRONAS’ coffers.
3. If PETRONAS’ money is used to fund oil subsidy, this indirectly means that PETRONAS’ will be giving money to Shell, Esso, Mobil etc. This means that there will be a huge outflow of money from Malaysia (as those are all international MNCs). Does this make sense economically?
4. PETRONAS is successful and where it is today partly because it is viewed internationally as a reputable company and this has earned it good ratings from financers etc. This also attracts people and other countries to do business which indirectly helps the country. At the very sight when these investors and partners find out the PETRONAS’ money is indirectly used for subsidy, PETRONAS’ reputation will be tarnished. Remember that even though PETRONAS’ is a government owned company, it is formally incorporated as a business and is totally run as a business. One good example is PDVSA in Venezuela. Since Pres Huga Chavex plundered PDVSA’s wealth, Venezuela’s oil production have dropped. Why? Because the national oil company there (PDVSA) can no longer invest to increase or maintain oil production. Bear in mind that Venezuela is a MAJOR oil exporting country. Do we want the same to happen here?

I’ve got many more things I can write but I shall leave it at this for now. I just ask that when people write things on this forum, that the facts be first checked and that we do not assume your assumptions as facts. Check first! Or at least, request for clarification in this forum.

Looks like a lot of us doesn’t realize that petrol is natural resources and it is getting lesser in this plant called Earth.

Are you sure the petroleum company manipulate the oil price? And it is not any government behind this?

Some questions for you to ponder.
Question 1:
Why oil manufacture cannot raise their production and price?
Answer 1:
US government has enough of reserve to manipulate the demand/supply and the price for the market

Question 2:
How much oil reserver does US has?
Answer 2:
If one day the Earth runs out of oil, US still has oil reserve that can last them for another 10 years.

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